AIBC News: Issue Number 209

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Contact Rosemary at executiveofficer@aibc.com.au or Mersine at membersupport@aibc.com.au if you have any questions about your membership.  

We’d love to hear from you!
 

AIBC Events This Month: Over the last month, there have been some informative and enjoyable networking events across the country.

AIBC NSW hosted a warm and lively networking dinner at Warung Suroboyo City. Despite the school holiday period, we were delighted with the strong turnout, welcoming representatives from the Indonesian Consulate General, BNI, the private sector, and several new faces interested in joining our growing community. It was a fantastic opportunity to connect over delicious Indonesian food, share insights, and strengthen business and people-to-people ties between Australia and Indonesia. 

AIBC QLD held an evening at Warisan restaurant in Brisbane. There were stimulating perspectives on the evolution of business dealings with Indonesia from Justin McGowan, CEO of Trade & Investment QLD and Rachel Colaso, GM Business Growth & International of Business Chamber of QLD. Great food and great company!

AIBC VIC, AIBC Investment & Infrastructure group and EY hosted a hybrid event examining the current state of the Indonesian economy. The expert panel of speakers, Edward Gustely, Peter McGregor, Darrin Grimsey and Rod Cummerford examined the recent Austrade Investment Mission to Indonesia, Indonesia’s place in a rapidly changing global environment, and how AIBC members can best address the current uncertainties.

AIBC WA and Invest & Trade Western Australia brought together senior leaders from government, business, and industry to mark the 35th anniversary of the WA–East Java Sister-State Relationship. Held on the morning of the Persebaya Surabaya vs WA State Team football match, this breakfast highlighted how sport can be a powerful diplomatic and commercial platform for cross-border collaboration. The panel session explored key investment and trade priorities, complementary capabilities between WA and East Java and opportunities across trade, innovation, and industry partnerships.

There is so much for AIBC members to engage in this year.  We are keen to hear your views - including the following:

1. IACEPA - Five Years On

Entering its fifth year, the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) stands out as a cornerstone of bilateral engagement, fostering new trade, investment, and people-to-people links that are shaping both economies for the future. IA-CEPA created a comprehensive framework to unlock shared economic potential. Since then, over 99% of Australian goods, by value, are eligible to enter Indonesia duty-free or under improved preferential arrangements, broadening access for agricultural, manufactured, and resource exports. The agreement also guarantees automatic import permits for key Australian commodities, supporting Australian farmers and exporters.

IACEPA has delivered some strong outcomes.  Total bilateral trade reached a record US$15.4 billion in 2024, with Indonesian exports to Australia growing over 14% since 2020, and investment rising in sectors like mining, renewables, chemicals, education, hospitality, and finance. 

In 2025, both countries commenced an official review of IA-CEPA to ensure it remains relevant and maximises mutual benefit. This inclusive process, involving government, business, and academic stakeholders, seeks to enhance outcomes in fast-evolving sectors and ensure the partnership adapts to new challenges.

The next phase of IA-CEPA is expected to drive deeper trade in services, support sustainable economic growth, and equip both nations to seize opportunities in a rapidly changing global economy.

2. Free Trade Agreement Modernisation Program

The ongoing modernisation of Australia’s Free Trade Agreements (FTAs) in Southeast Asia is a strategic priority, ensuring trade accords like the IA-CEPA and AANZFTA adapt to new economic realities and deliver continued benefits. Central to this effort is the Southeast Asia FTA Modernisation Grant Program, which supports research and industry-led proposals for updating existing FTAs. 

As part of the 2025 Indonesia-Australia Comprehensive Strategic Partnership Plan of Action, future FTA updates will target priority sectors, such as agriculture, resources, and high-value services, alongside modern infrastructure and financial innovation. The program also incorporates wide consultation with businesses and community stakeholders to ensure that reforms deliver practical value and remove persisting trade impediments.

Through these updates, the FTA modernisation program lays the groundwork for future-proof economic partnerships, maximising regional integration and supporting inclusive, sustainable growth across Australia and its Southeast Asian partners.

AIBC will be contacting members for an opportunity to provide your input.

3. Promoting Teaching Bahasa Indonesia in Australian Schools

The promotion of Bahasa Indonesia in Australian schools remains an important priority for building long-term mutual understanding and partnership. Despite a downward trend in student numbers in recent years, various innovative initiatives are helping to revitalise interest and highlight the strategic value of Indonesian language learning. Among these, the Asia Education Foundation’s (AEF) BRIDGE School Partnerships have been particularly successful.

Another notable initiative is the Indonesian Language Learning Ambassadors (ILLA) program, which places Indonesian pre-service teachers in Australian classrooms. The Australia-Indonesia Youth Association (AIYA), through its language exchange events and digital resources, continues to connect young people from both countries, making language learning relevant to everyday life. The AII and the National Australia-Indonesia Language Awards (NAILA) annually celebrate excellence in Bahasa Indonesia across all age groups, raising the profile of the language nationwide.

Sustained investment and partnership are essential for strengthening the status of Bahasa Indonesia in schools. Expanding digital learning options, mentoring, and professional networks for teachers, and deepening collaboration with Indonesian institutions, will keep the language vibrant and support a new generation of Asia-literate Australians.

The  Australian Indonesia Institute (AII)  awards program recognises the teaching and learning of Bahasa Indonesia through the following awards:

• AII Language Teaching Award 
• AII Studies and Cultural Leadership Award 
• AII Distinguished Service Award 

The 2025 round will be opening soon. For more information and details of the 2024 award program click here

AIBC would love to hear from members who have studied Bahasa Indonesia at school/university or other means. Contact executiveofficer@aibc.com.au to share your story.

4. Opportunities for Australians and Indonesians to Work in Each Other's Countries - Visa Changes

Through mechanisms introduced by the IA-CEPA and subsequent bilateral initiatives, Australians and Indonesians now enjoy significantly more opportunities to work, train, and collaborate in each other’s countries. The standout feature is the Skills Exchange Program, enabling professionals from both sides to access up to six months of workplace training or professional placements, broadening skills and cross-cultural understanding.

Ongoing reviews under IA-CEPA and the broader FTA modernisation agenda seek to address remaining non-tariff barriers and ensure procedures reflect contemporary workforce mobility needs. Meanwhile, initiatives like the Australia Awards and New Colombo Plan continue to sponsor exchanges and scholarships in both directions.

These programs help build deeper professional networks, foster business innovation, and provide hands-on experience critical for regional cooperation and competitiveness.

Professional Skills Exchange

This comprehensive webinar hosted by Katalis and AIBC provided up to the minute information from the Ministry of Immigration and Corrections as well as the experience sharing of Ben Cass and John Strain in managing long term careers in Indonesia. Access the recording here if you would like to learn more about the visa requirements for Australian professionals seeking to travel and work in Indonesia.

Learn about opportunities for up to 12-month placements for young professionals (under 40 years of age) in Australia or Indonesia through the SE Asia professional placements program

Minerals, Energy and Industry Group

AIBC's Minerals, Energy and Industry Group held its second half-yearly online conversation with Jakarta-based senior international lawyer Bill Sullivan. Moderated by group chair Geoffrey Gold, the 90-minute engagement and Q&A covered “Resources, Downstreaming and Social Obligations: Eight months into the Prabowo Presidency, what has changed in terms of Indonesian law, policy and regulation affecting the local energy and mining industries?”

Bill opened by commending the speed with which President Prabowo had acted on his "Golden Indonesia 2045" platform, especially the expansion of downstreaming beyond minerals and coal to 28 commodities. He noted, however, that downstreaming success in nickel may not be replicable across other sectors, and that if foreign investment does not follow without clearer returns,  Indonesia’s new sovereign wealth fund, Danantara, appears set to plug private investment gaps.

On regulatory changes, Bill discussed the recent export proceeds rule requiring 100% of export revenue (except oil and gas) to remain in Indonesia for 12 months; mining extraction obligations to supply state enterprises at below-market prices; the granting of priority mining rights to cooperatives and religious organisations without public tender; and provisions that risk legitimising illegal mining. These could be described as “social engineering” inconsistent with safe or efficient mining operations. On land ownership and usage, he explained how titled land can be confiscated if deemed "abandoned" under vague criteria.

Despite a new roadmap and carbon exchange, only 14% of energy is renewable. Coal phase-out plans are back-loaded, and funding remains a major hurdle.

Bill highlighted the continuing strong potential for Australian services and technology (METS) firms in Indonesia and detailed how the IA-CEPA treaty, now undergoing its first five-year review, has encouraged substantial Indonesian investment into Australian minerals projects and METS, while offering less protection for Australian investors in Indonesia than expected, partly due to vague carve-outs and weak dispute resolution clauses.

Market Opportunities for Minerals and Energy Members

17 - 20 September: 23rd Mining Indonesia Exhibition, Jakarta International Expo, Indonesia. Free expo visitor pre-registration is now open at this link 

21 - 23 October: International Mining and Resources Conference & Expo 2025,  ICC Sydney, Australia. Free expo visitor pre-registration is now open at this link

Contact group chair, Geoffrey Gold for further information on conference discounts and market briefings and opportunities to meet with senior officials at the events –minenergyind@iabc.com.au